Market Analysis by David Eng, Investment Advisor, Harbourfront Wealth – Sonora Wealth Group
January 30, 2025 –
“Canada’s property market in 2025 reflects an economy in transition, with adjustments driven by population trends, decreasing interest rates, and regional dynamics. The latest figures from the New Housing Price Index (NHPI) registered a slight monthly decline of 0.1% in new home prices, while annual growth remained tepid at 0.1%. Regions such as Calgary and Québec experienced positive annual growth, while areas including Ottawa and Vancouver demonstrated declines.
Vancouver, for instance, has shown stability in its prices month-over-month but has experienced a 0.7% year-on-year decline. High costs and oversupply, particularly in the luxury housing segment, have saturated the market. Conversely, the office sector is showing promise with a resurgence in demand and no new supply.
Overall, reduced immigration could exert downward pressure on demand for new homes, particularly in major urban areas. Meanwhile, the Bank of Canada’s ongoing interest rate cut cycle aiming to boost economic growth, offers support for buyer activity.
Looking ahead, the Canadian economy benefits from a resilient labor market, even as overall economic growth remains tepid. However, uncertainties tied to US trade policies remain a risk. While further interest rate cuts could amplify housing demand, long-term growth will depend on addressing affordability challenges and sustained economic growth.”
David Eng, Investment Advisor, Harbourfront Wealth – Sonora Wealth Group